<p>On the daily chart below, we can
see that the price has finally broken out of the falling channel. A further
breakout of the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 0.9287 will give conviction
to the buyers to target the 0.96 handle. </p><p>As we can see the falling channel
was <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>diverging</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a>. When the price breaks out, we
can generally see a correction all the way back to the top of the channel. The <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> also switched to the upside giving a bullish bias. </p><p>On the 4 hour chart below, we can
see that the buyers are struggling to break convincingly the resistance at
0.9287. Last Friday we got a fakeout and this continuous knocking on the
resistance is now forming an <a target=“_blank“ href=“https://www.forexlive.com/Education/chart-patterns-guide-20220125/“>ascending
triangle pattern</a>. </p><p>The buyers should have enough
conviction to break out to the upside given that the fundamentals are now again
in favour of the USD. The market is repricing a higher terminal rate from the
Fed caused by recent hot economic data. </p><p>On the 1 hour chart below, we can
see that if there is to be a pullback, it shouldn’t go below the 0.9214 level
where we have <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a> with the upper band of the
broken channel, the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a>, a previous swing point and the
61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level. </p><p>Sellers will need to break below
that strong zone to invalidate everything and then target the lower band of the
channel. </p><p>For the buyers that zone will be
the last line of defence. For the more near-term price action, a break above
the resistance at 0.9287 should lead to a bullish run given that yesterday’s <a target=“_blank“ href=“https://www.forexlive.com/news/sp-global-february-flash-services-pmi-505-vs-472-expected-20230221/“>US
PMIs</a> surprised again to the upside. </p>
see that the price has finally broken out of the falling channel. A further
breakout of the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at 0.9287 will give conviction
to the buyers to target the 0.96 handle. </p><p>As we can see the falling channel
was <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>diverging</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a>. When the price breaks out, we
can generally see a correction all the way back to the top of the channel. The <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> also switched to the upside giving a bullish bias. </p><p>On the 4 hour chart below, we can
see that the buyers are struggling to break convincingly the resistance at
0.9287. Last Friday we got a fakeout and this continuous knocking on the
resistance is now forming an <a target=“_blank“ href=“https://www.forexlive.com/Education/chart-patterns-guide-20220125/“>ascending
triangle pattern</a>. </p><p>The buyers should have enough
conviction to break out to the upside given that the fundamentals are now again
in favour of the USD. The market is repricing a higher terminal rate from the
Fed caused by recent hot economic data. </p><p>On the 1 hour chart below, we can
see that if there is to be a pullback, it shouldn’t go below the 0.9214 level
where we have <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a> with the upper band of the
broken channel, the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a>, a previous swing point and the
61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level. </p><p>Sellers will need to break below
that strong zone to invalidate everything and then target the lower band of the
channel. </p><p>For the buyers that zone will be
the last line of defence. For the more near-term price action, a break above
the resistance at 0.9287 should lead to a bullish run given that yesterday’s <a target=“_blank“ href=“https://www.forexlive.com/news/sp-global-february-flash-services-pmi-505-vs-472-expected-20230221/“>US
PMIs</a> surprised again to the upside. </p>
This article was written by ForexLive at www.forexlive.com.